- SUI is up more than 100% over the past 30 days to $2.35
- However, it has faced accusations of creating artificial value from on-chain analyst Light
- He accuses Sui Fund of selling $400 million worth of insider tokens, which the company immediately denied
The SUI token recently showed a rise to $2.35 but faced suspicions that it was greatly aided by $400M worth of insider token sales.
Sui Foundation immediately and strongly denied such allegations, stating that all token processes are transparent and there is no room for insider or employee involvement in token sales.
Details of Sui Foundation, SUI Token Growth, and Allegations
Behind the Sui Foundation is Mysten Labs, which developed its own blockchain and an entire decentralized platform on top of it to overcome one of the key challenges of bridging the gap between Web2 and Web3, and provide parallel transaction processing without commissions.
It uses the Move programming language which allows the creation of Smart Contracts, NFTs, and other DeFi applications similar to Solidity, and uses a delegated proof-of-stake (DPoS) consensus mechanism.
Many see it as one of the key infrastructure players for the future of Web3, and the growing interest in the technical potential makes it possible to make that assumption due to the numbers.
Specifically the native SUI token has seen over 440% growth over the this year, with the token rising 100% in the last 30 days to $2.35 and a market capitalization of $6.1B.
However, this has met with serious criticism from on-chain analyst Light, who claims that this increase in value and market capitalization is due to the sale of $400M worth of insider tokens.
Light stated:
“Secondly, and something I think few know — insiders (including what is likely a large foundation wallet) have sold $400 million in tokens throughout this run-up.”
The Sui Foundation rushed to issue an unequivocal and immediate statement that seeks to refute Light.
The main point Sui wants to convey is that any involvement of insiders or employees, including Mysten Labs, did not violate the terms of lockdowns or token delivery schedules.
Sui also emphasized that there can be no room for insider token sales and that the entire network and any transactions are completely transparent, eliminating that possibility.
Conclusion
So far this has not affected the token price, which could happen no matter how well-founded Light’s concerns are.
And if Light’s analytics are indeed false, it would be a pity that an important player like Sui would suffer losses undeservedly, which could suspend its key contribution to the entire Web3 infrastructure.
However, even if Light turns out to be right, it’s also a pity for the entire Web3, because it will make it harder to assess how important Sui’s initiatives are to the industry. It could create a classic situation where some company makes questionable business moves but the whole industry possibly loses an important technology.
We’ll be watching closely to see if this continues to develop, stay tuned.
